Economic transformation based on leading commodities through sustainable development of the oil palm industry

Abstract

The oil palm industry is a strategic and leading sector of agriculture that is developing in Indonesia. Riau is a province in this country that has quite large natural resources in the plantation with the largest contribution being oil palm. This study aims to determine the form of economic transformation based on superior commodities through the development of a sustainable palm oil industry. The study adopts a mixed-method approach, employing a sequential explanatory model to gather a comprehensive understanding of the oil palm industry in Bengkalis Regency, Indonesia. Quantitative data collection precedes qualitative data analysis, allowing for a deeper exploration of the research topic. The analysis units encompass the oil palm industry, households, and village officials, ensuring a holistic examination of the subject. Data collection involves a range of methods, including surveys, interviews, observations, and focus group discussions, engaging diverse stakeholders such as community members, industry representatives, and government officials. Secondary data from relevant agencies and previous research are also integrated. Ethical considerations are emphasized in data collection and dissemination, ensuring transparency and balance in reporting. Overall, the methodology is well-structured and comprehensive, enabling a thorough examination of the industry's sustainability and development. The research results indicate that the oil palm manufacturing industry is a leading sector and has been categorized as sufficiently sustainable based on different perspectives. Through an optimistic scenario, the government must make efforts and total support to improve the important factors that influence the development of the palm oil processing industry in a sustainable manner, including the community empowerment program, future palm oil prospects, implementation of environmental management.